Phase 02: Form

Where to Form Your LLC for Personal Errands & Concierge: Home State is Usually Best

7 min read·Updated January 2025

You're launching your own personal errands or concierge service. Maybe you're a seasoned errand runner, a personal shopper, or breaking free from TaskRabbit. You've likely seen ads pushing Delaware or Wyoming for your LLC. While these states offer perks, for most local errand and concierge businesses, keeping it simple and forming your LLC in your home state is the smartest, most cost-effective choice. Here’s why, and when those out-of-state options might actually fit.

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The Quick Answer

If you operate a personal errands, personal shopping, or senior companion service primarily within one state, form your LLC there. Forming in Delaware or Wyoming when your clients are in another state means you will almost certainly need to register as a foreign LLC in your home state anyway. This means paying fees in both states. For most local errand and concierge services, the slight benefits of out-of-state formation do not outweigh the added cost and paperwork.

Side-by-Side Breakdown

Home State: One set of state fees (typically $50-$500). Low complexity. No foreign registration needed. Best for any personal errands or concierge service operating within one city or region.

Delaware: $90 filing fee + $300/year franchise tax + registered agent fee. Foreign registration required if you operate in another state. Not typically recommended for local errand or concierge services. Best for tech startups raising millions from investors, or businesses with highly complex ownership.

Wyoming: $100 filing fee + $60/year minimum fee. Foreign registration required if you operate elsewhere. Could offer strong charging order protection, but unlikely to be worth the extra cost for a typical solo errand runner. Best for businesses owning high-value assets like real estate or intellectual property, not usually service-based operations like yours.

When to Choose Delaware

Unless you are somehow planning to build a multi-million dollar tech platform for errand services and attract venture capital (highly unlikely for most local operations), Delaware is not for you. It adds complexity and costs you don't need for a local personal shopping, errand running, or senior companion service. Investors prefer Delaware C-Corps, not usually Delaware LLCs, and certainly not for a small, local service business.

When to Choose Wyoming

Wyoming has strong charging order protection, which means creditors have a harder time taking your personal assets if your business is sued. However, for a typical personal errand business where your main assets are your car, phone, and scheduling app, the added cost (registered agent, annual fees) and complexity of registering in two states usually isn't worth it. Consider Wyoming *only* if you have significant personal wealth you are trying to shield from business risks and your legal counsel specifically recommends it after a detailed risk assessment for your specific operation. Otherwise, it's overkill for most solo errand runners or small teams.

When to Form in Your Home State

Form in your home state if your personal errand business, personal shopping service, or senior companion operation serves clients within one state (which is most common). This keeps your legal structure simple, avoids paying double fees (e.g., $100 in Wyoming *plus* $150 in your home state for foreign registration), and simplifies yearly compliance. For service businesses where your primary 'assets' are your time and reliable transportation, the home state offers ample protection, especially when combined with standard general liability insurance for errand services.

The Verdict

Home state for almost all personal errand services, personal shoppers, and senior companion businesses. Delaware is for high-growth tech startups (not you). Wyoming is for complex asset protection strategies, which are rarely needed for a straightforward local service business. Keep it simple and focus on serving your clients.

How to Get Started

Visit your state's Secretary of State or equivalent business registration website. Search for 'LLC formation' or 'start a business.' This is the simplest path for most errand runners. If you're still considering Delaware or Wyoming, add up *all* the costs: the filing fee, annual franchise tax or report fee, *and* the registered agent fee in that state. Then, don't forget the foreign registration fees for *your home state* where you'll actually operate. For a local errand business, the total cost difference will almost always favor your home state by hundreds of dollars per year.

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FREQUENTLY ASKED QUESTIONS

Do I have to register in my home state if I form in Wyoming?

Yes. If you conduct business in your home state — employees, an office, or regular customers there — you must register as a foreign LLC and pay their fees too.

Is Wyoming really better for asset protection?

Wyoming has stronger charging order protection than most states, making it harder for creditors to seize your membership interest. The practical difference for a single-member LLC with no major assets is minimal.

Can I change my state of formation later?

You cannot move an LLC between states directly. You would dissolve the old LLC and form a new one, or domesticate the LLC if your state allows it. It is easier to start in the right state.

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